RBC Capital Reiterates Outperform Following Sprouts Farmers Market's (SFM) Strong 4Q

RBC Capital reiterated an Outperform rating and $33.00 price target on Sprouts Farmers Market (NASDAQ: SFM) following the company's 4Q earnings report. Sprouts delivered a strong comparable store sales beat (7.4% vs consensus of 5.7%), besting even the highest estimate on the Street. RBC believes "access" will drive the next leg of growth in the specialty natural/organic segment.

Analyst William Kirk commented, "Sprouts reminded investors what their comparable stores sales can look like with just a little inflation. Comp ex-inflation continues to run at over 6%, setting the table for HSD potential if/when inflation returns to normal levels. We believe FY16 guidance is achievable/ beatable and strategic initiatives, combined with a defensible business model, will lead to continued strong share gains. Reiterate Outperform and $33 PT."

For an analyst ratings summary and ratings history on Sprouts Farmers Market click here. For more ratings news on Sprouts Farmers Market click here.

Shares of Sprouts Farmers Market closed at $27.43 yesterday.

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